India-U.K. Trade Deal Opens Doors for Indian Exporters; Focus Turns to Textiles, Auto, and Pharma Sectors

India's recent Free Trade Agreement (FTA) with the United Kingdom is expected to bring a fresh wave of opportunities for a wide range of Indian industries. The pact removes tariffs on almost all Indian exports to the U.K., including textiles, agriculture, pharmaceuticals, seafood, and gems. This landmark move is set to make Indian goods more competitive and could significantly lift trade volumes between the two countries.

Signed by Commerce Minister Piyush Goyal and Britain's Jonathan Reynolds in the presence of both nations' prime ministers, the agreement aims to boost annual bilateral trade by $34 billion. The deal arrives at a time when global supply chains are shifting, and India is positioning itself as a strong alternative under the China-plus-one strategy.

Industry experts believe that zero-duty access for sectors such as textiles, engineering, seafood, and pharmaceuticals will not only enhance exports but also attract more foreign investment. Harshal Dasani from INVasset PMS noted that this is more than just a diplomatic event—it's a meaningful economic push for Indian exporters. Pallavi Bakhru of Grant Thornton Bharat added that it could also support job creation and industrial expansion across both economies.

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Key Industries Expected to Gain

Textiles & Apparel:

The scrapping of 10–12% tariffs on Indian textiles gives local companies an edge over regional players. With this cost advantage, firms such as Welspun India, Arvind, and Vardhman Textiles may experience an increase in overseas orders. Market enthusiasm was visible, with shares of Trident jumping 3.65%, and other textile stocks gaining 2–3% on the announcement day.

Agriculture & Marine:

Nearly 95% of Indian farm and processed food exports will now enter the U.K. at zero duty, aligning India's treatment with that of top EU exporters. According to Mahesh Ojha of Hensex, agri exports could rise by 20% over the next few years. Marine exporters, like Avanti Feeds, also stand to benefit as India taps into the U.K.'s sizable seafood market, where its current share is just over 2%.
Jewellery & Leather:
India's jewellery exports, worth over $900 million annually to the U.K., could double. Titan and Kalyan Jewellers are among the key names expected to benefit. In footwear, Relaxo and Bata India may gain from the complete removal of 16% tariffs.

Auto Parts & Pharmaceuticals:

Engineering firms and auto component manufacturers, such as Bosch India, SKF India, and Bharat Forge, could see higher exports due to improved trade terms. Indian electric vehicle manufacturers are also likely to benefit under a quota-led opening of the U.K. market. Meanwhile, pharma companies are set to gain from improved access to the regulated U.K. healthcare market.

Other Segments:

The agreement also reduces import duties on Scotch whisky in India from 150% to 75%, and eventually to 40%, benefiting firms like United Spirits. IT majors such as Infosys and TCS are expected to explore more cross-border service contracts, thanks to improved mobility provisions.

Conclusion

For companies that prioritise exports, the free trade agreement between India and the U.K. represents a significant shift. Now that tariffs have been removed, businesses in the textile, agricultural, jewellery, and other sectors are in a better position to increase their market share in the U.K. The industries that fit this new trade dynamic are probably going to be in the spotlight in the upcoming quarters as investors reevaluate their holdings.